Embattled Oroton may seek a buyer

Retailer Oroton will lean on its largest shareholder to help turn its business around.

Struggling luxury handbag retailer Oroton has flagged it could be up for sale as it explores options to overcome falling sales and a precarious debt position.

The possible sale of the long-term ASX-listed group is one option to emerge from a review undertaken in May as the company sought to combat a share price plunge of 63 per cent since November.

"Numerous parties have expressed interest in exploring certain strategic options which may involve a sale, refinancing of debt facilities or recapitalisation of the company," Oroton said in a statement on Tuesday.

The company has also revealed it could receive up to $3 million in credit support from former director Will Vicars, a fund manager who holds an 18.2 per cent stake on Oroton.

Oroton has a $35 million facility with Westpac that expires in April 2018, which is currently drawn to $16 million after it bought inventory for its spring season.

The company said it would need support from Westpac again between August and November as it buys stock for the Christmas and post-Christmas sales.

The financial backing from Mr Vicars could provide some support for its facility with Westpac, though the terms on which he may advance the funds are yet to to be finalised, Oroton said.

The handbag retailer expects its underlying earnings before interest, tax, depreciation and amortisation (EBITDA) to fall to between $2 million and $3 million in 2016/17, from the prior year's $12.9 million.

Sales revenue dropped 11 per cent in the nine months to April 30, compared with the same period a year ago, and Oroton said on Tuesday that market conditions remain "very competitive and challenging".

Oroton shares gained 4.5 cents, or 4.4 per cent, to close at $1.08 on Tuesday, after hitting an 18-year low of $1.035 on Monday.